The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-06
HARPER'S BANKING METHODS.
Testimony Revealing How the Fidelity Was
Able to Make Good Showing in Figures.

CINCINNATI, Dec. 1.-The Harper trial was
resumed to-day, with Mr.. Schofeld, of the First
National Bank. of New York, on the stand to
make some additions to his testimony. -Anon;
other things, he stated that his bank had a
claim of $3.50, 600 against Receiver Armstrong,
of the Fidelity Bank.
Book-keeper Waters was then cross examined
at considerable length. He said the Riverside
iron and steel-works, indorsed by Harper, gave
them credit of $780, 900. He stated, also that
Harper had fictitious creditsw the First
National Bank of New York upon which he
drew. He admitted that he helped the bank
examiner to make his March examination, and
gave him all the information in his power.
The witness asked, upon eross-examina-
ton, whether the effect of the deposit ticket
dated March IL, 1887, for 5000 900. was that this
amount was on deposit in the First National
Bank to the credit of the Fidelity. He said that
on its face it would appear so, but the fact was
that there were bills payable outstanding against
the Fidelity for the same amount. Harper had
borrowed, on the name of the Fidelity, the $780,,
O0O andissued certificate of deposit therefor, so
that the fact was the bank had nothing to its
credit. The $1,000, 900 sent to the Chemical
should have been entered on the general ledger
of the Fidelity as "bills payable and the Chem
were not made up until the bank closed. Harper
owned .449 shares of old and / 53f shares of the
new stock.
Witness was asked whether he had not some
times acted as receiving teller and whether it
was not customary to carry checks as cash"
He replied that checks for his salary had been
carried as cash"
This testimony was introduced to show a Gus
tom in the Fidelity of carrying checks cash.
Judge John 5. Connor. assignee of the River
side mill. testified that the assets were $369.36;
the mill sold for $4,000.
FL. P Lloyd followed Judge Connor. These
gentlemen engaged in a squabble over the
Riverside mill. Mr.. Lloyd is the trustee of
Harper Individually. The assets consist princi-
the liabilities are s25 900 due the Chemical
Bank, $4,000 due the Western Bank,
OF New York, a large amount. unknown.
Chicago gentlemen. The receiver of the Fidelity
has brought suit against Harper and the other
Fidelity directors for S., 900, 00o. There is also
a suit pending against Harper to enforce his liza
bility as a stakeholder in the "Grasshopper'
railroad for $500 900. Harper kept no personal
books-at least the witness could not find any
The ''Grasshopper" road is "a streak of rust"
UP in Ohio. commencing nowhere and ending
nowhere 1t was purely a speculative road,
used solely to float bonds. When Harper failed
in one of the Handy wheat deals he paid off
portion of his Indebtedness in these bonds.
Phil Armour, the great Chicago pork-packer, it
is intimated, got lot of them
called to the stand. He stated that the board
never directed the issuance of certificates of de-
posit. two for 5000, 900 and one for $500. 900,
New York banks. The question of issuing GER
tifcates was discussed by the directors
c. A Hinch, late assistant receiving teller of
the Fidelity Bank. testified to his knowledge of
the cash items, and produced schedule of cash
items in the accounts of E L.. Harper and E. Z.
Harper d Co., and for whom held. from March
l. Many were held under Mr.. Baldwins instruc-
tions. The witness read list of cash items car
ried for j. w. Wiltshire. T. L. Harper 81 Co,
Swift iron and steelworks, and E.
L. Harper, from day to day. On
Feb. 10 they aggregated $50, 000
on March 8. S763, 466. 7S. After the middle of
March the credits to Wiltshire. Eckert & Co., and
Swifts iron and steel-works. began to grow
enormously. The witness got his instructions
IN regard to those credits from Harper Checks
of the First National Bank were held at his
desk by Harper's instruction. When the great
crash came there were checks on hand of Will
shire, Eckert S Co.. j w. Wiltshire & Co., and
Swifts iron and steelworks, amounting to ST.,
0O9. 266 92 which had been carried as cash by
this bank